Youโ€™ve been saving for a down payment, making a wish list, and browsing listings. Youโ€™ve determined how much house you can afford and feel confident youโ€™re ready to jump into the real estate market. But if you havenโ€™t yet gotten pre-approved for a mortgage then youโ€™re not quite there yet. Getting pre-approved โ€“ especially in todayโ€™s New York market โ€“ can mean the difference between having your offer accepted and getting beaten out by another buyer. It can be competitive out there for buyers, and it is essential that you first get pre-approved before you begin your search. Hereโ€™s why.

It defines your parameters

Firstly, buying a home is one of the biggest financial commitments you will make in your lifetime. But it also has a strong emotional component. Your new home will be the place where youโ€™ll make many memories, including possibly raising a family. Itโ€™s easy to get swept away by the emotional aspect of it while you dream of living in your new place. Thatโ€™s one reason why itโ€™s essential to get pre-approved. When you get pre-approved for a mortgage, youโ€™ll know exactly what your budget is. You can then narrow your search to homes that fit comfortably within that range. It wonโ€™t be easy to get carried away, saving you time and heartache down the line.

It gives a seller confidence in your offer

Secondly, you need to be aware that we are still in a sellerโ€™s market. That gives the seller an upper hand. Many sellers will receive multiple offers on their homes from very interested buyers. If you arenโ€™t pre-approved for a mortgage, then it is extremely unlikely that your offer will be the one they accept. Getting pre-approved shows a seller that you are serious about buying their home and that you are likely to make it to the closing table. Without that pre-approval, you may be too much of a risk.

It gives you bargaining power

A third reason why itโ€™s so important to get pre-approved for a mortgage is that it gives you more room to negotiate. When a seller knows that youโ€™re more or less a sure thing, then they may be willing to make some concessions during the negotiating process. This could include making repairs or upgrades on the home before closing or even covering your closing costs.

It will help you close faster

Finally, getting pre-approved for a mortgage will help you close on the home faster. Who doesnโ€™t want to do that? The closing process can be long and stressful, with the average home closing taking about 45-60 days. Getting your mortgage approved is one of the things that can hold up the process. When you get pre-approved, you can speed the process up. This is because youโ€™ve already got your paperwork organized and you have a relationship with a lender. As soon as your offer is accepted you can get the ball rolling with an appraisal and home inspection and get to the closing table that much faster.

Contact Keller New York today!

Are you excited to buy a New York home? Then contact the Keller New York Bronx office at 718-697-6800 or the Eastchester – Scarsdale office at 914-713-3270 today. Our team of experts has years of experience helping New York home buyers just like you, and weโ€™d love to help you make your real estate dreams a reality!